Yedo Report

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Yedo Department Stores
To: Yamaguchi Tamagochi, CEO of Yedo
From: Bill Clinton, Manager of TWCB
Date: 20th January 2009
Subject: Report on possible solutions to Yedo's performance

Purpose and Scope
This report has been submitted in response to a request from Yamaguchi Tamagochi, CEO of Yedo. The aim of this report is to describe and analyze the current situation in order to recommend future strategies. This report will cover the following areas: 1. Current Situation

2. Strategic Options
1. Stores' image renovation
2. Worldwide expansion
3. Own label brands
3. Recommendations

1. Current situation
After over 110 years of successful trading, Yedo is struggling a difficult situation. As a result, the profits have feld sharply over the last year and its future situation is now questioned. Furthermore, its not the only company of the same industry who is losing profitability. This situation is primarily due to:

• New entrances of foreign competitors.
• Yedo's stores are being perceived as an old fashioned stores.

It is unlikely that the current situation will remain stable. Therefore, measures are required in order to develop further strategies.

2. Strategic Options

2.1 Stores' image renovation: The current image of Yedo's Stores is not appropriate. It is old fashioned. The customers are going to the new occidental competitors stores due to their updated, fashionable and innovative image. This strategy would mean a drastic change in the company's image and, consequently, customer perception. Therefore, Yedo's stores would attract a new public, young customers. This segment is growing at an unbelievable rate, as a consequence, targeting these customers would be positive for the company. 2.2 Worldwide expansion: The new entrances of foreign competitors to the japanese market is putting pressure on Yedo's Department Stores. Consequently, a worldwide expansion should be considered to take advantage of the...
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